Marketing: Product Flashcards
1
Q
The role of packaging
A
- Protect the product
- Provide information about the product
- To help consumers recognize the product
- To keep product fresh
2
Q
Benefits of new product development
A
- Charge higher prices for new products
- Increase potential sales, revenue and profit
- May achieve growth and economies of scale
- Spreads risks because business have other products and adding new ones spreads the risk
3
Q
What are the extension strategies?
A
- Finding new markets for the product
- Finding new uses for the product
- Adapting the product or the packaging to improve its appeal to consumers
- Increased advertising and other promotional activities
4
Q
Brand image is….
A
The general impression of a product held by consumers
- Consumers recognize their product more easily when looking at similar products
- Their product can be charged higher than less well-known brands
- Easier to launch new products into the market
5
Q
When deciding the price you should consider what?
A
- Is it a new or existing product?
- Is the product unique?
- Is there a lot of competition in the market?
- Does the business have a well-known brand image?
6
Q
Define price elasticity of demand
A
Measures by how much demand for a product changes when there is a change in price
7
Q
Define price inelastic demand:
A
The percentage change demand is less than the percentage change in price. Products that are not very responsive to changes in price
8
Q
Define price elastic demand
A
The percentage change demand is greater than the percentage change in price. Products that are more responsive to changes in price
